TPI Composites to divest automotive business unit
As a part of the company’s continued focus on wind, TPI has entered an agreement to sell, rename subsidiary to Clear Creek Investments.
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TPI Composites Inc. (TPI, Scottsdale, Ariz., U.S.) has entered into a definitive agreement to divest its automotive business to Clear Creek Investments LLC (CCI, Solana Beach, Calif., U.S.), a dedicated innovation and sustainability investor with a focus on deploying capital in companies driving climate solutions and climate resiliency throughout the energy, water and food value chains.
As part of the divestiture transaction, TPI will sell its automotive subsidiary to CCI, which will be renamed Senvias Inc. The transaction is expected to close on June 30, 2024.
“After a thorough review of strategic alternatives, we’re pleased to enter into this agreement with CCI,” says Bill Siwek, president and chief executive officer (CEO) of TPI Composites. “The divestiture is expected to improve monthly cash flow by about $1.7 million over the balance of 2024 and underscores our focus to continue executing on our core business, achieve profitability and improve cash flow and drive long-term shareholder value.”
He adds that CCI will “provide the new capital and focus to enable the automotive business to grow and serve its customers in the electric vehicle market.”
"At CCI, our goal is to identify and support innovative businesses that drive climate solutions and build climate resiliency, which makes Senvias a natural fit,” adds Todd Crescenzo, CFA, managing partner and chief investment officer at CCI. “We are grateful for TPI’s more than 50 years of leadership in composite vehicle structures and look forward to providing our own combination of investment and operational expertise to propel Senvias and the automotive industry toward a greener and more sustainable future.”
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